05/08/2010 - Clampdown on withholding deposits
Landlords who wrongly keep tenants' rent deposits will be clamped down on, the Scottish Government has promised.
Housing Minister Alex Neil warned that the Holyrood will "move quickly" against landlords that unfairly withhold deposits, which it estimates could amount to almost £3.6 million a year, and affect 8,000 to 11,000 tenants.
The views of the public and housing leaders are being sought by ministers ahead of a tenancy deposit scheme, which is to be introduced in Scotland.
"Landlords can legitimately withhold a tenant's deposit for a number of reasons," Mr Neil said.
"However, this Government shares the concerns about unfairly withheld tenancy deposits and I want to move quickly to resolve this issue.
"The consultation will help shape the regulations governing the approval of tenancy deposits schemes in Scotland so that tenants receive a better deal."
Landlords collect an estimated £27.4 million to £31.9 million in rental deposits every year, according to the consultation document.
But 18,000-26,000 tenants, seeking return of their deposit, have some or part of it withheld annually, amounting to £5.3-8.4 million.
Schemes in England suggest about 60% of these grievances are legitimate, amounting to £2.2-3.6 million.
Deposits can be withheld by landlords to cover costs for things like damage to a property or cleaning.
Copyright © Press Association 2010
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